Globalisation Flashcards
Arguments against globalisation: (3)
Many TNCs ignore environmental concerns
Jobs can be poorly paid and insecure
Culture is being eroded
Define globalisation
The way ideas, lifestyles and cultures spread around the world
Why do companies like to go global? (3)
Potential growth
More customers
Global market is larger than a domestic one
Name three examples of factors leading to globalisation
- Developing technologies
- Politics
- Economy
Define TNC
A TNC (Transnational Corporation) is a company that has branches in many countries. HQs are usually in MEDCs
Name three benefits for globalisation
TNCs generate lots of income
Creates jobs in LEDCs
Can break down barriers between countries
Name three characteristics of TNCs
TNCS usually have their HQs in MEDCS
They send the work to LEDCs where costs are lower
TNCs try to increase profits by lowering their manufacturing costs
Give the 5 W’s of the Nike case study
Who: Nike
What: They have been accused of using sweatshops to produce footwear and clothing items
Where: Nike has been accused of using sweatshops to produce goods in South Korea, the People’s Republic of China and Taiwan. As these countries developed Nike found cheaper labor in the People’s Republic of China and Vietnam
When: Since the early 1970s they were accused of using sweatshops. Throughout the 90s they were criticised for using them which they denied, however in 2001 in an interview Nike admitted that they didn’t control what went on in the factories
Why: The globalisation of business leads increasing numbers of major corporations to take advantage of low cost sweatshop labour in developing countries
When:
What is the profit equation ?
Revenue - costs = profit
Define trade deficit
the amount by which the cost of a country’s imports exceeds the value of its exports.
Define trade surplus
The amount by which the value of a country’s exports exceeds the cost of its imports
